How Indian startups are driving the EV revolution and green innovation

India is on the brink of a game-changing transformation in its mobility space, as the electric vehicle (EV) revolution is really hitting its stride. The growth in the EV sector is no longer just a tangible dream but a hard-nosed reality, backed by eye-popping statistics and a growing presence on the roads. In the year 2024, electric vehicle sales took off, surpassing two million units and marking an impressive 27% increase from the 1.52 million sold in 2023. This growth was largely driven by the electric two-wheeler market, which accounted for 60% of total EV sales, totalling 1.2 million units. The segment for electric three-wheelers has witnessed a wonderful start with 6,94,466 units sold in CY2024, overshadowing 5,82,548 units that were sold in 2023 itself, representing an upsurge of 17.528%. With the above sales, India has now become an emerging player in the global EV arena.

The Rise of Environmental Consciousness in EV Adoption

This growth is interlinked with a rising level of environmental concern among the population of India. People are more conscious of the negative impact that Internal Combustion Engine (ICE) vehicles have on air quality and carbon emissions. The suffocating smoke in metropolitan cities and climate change has created a need for cleaner options. While factual data on vehicle environmental awareness changes is still being developed, several surveys consistently show an increase in EV purchasing intent for fully electric vehicles.

These studies reveal that now, more than ever, people are driven by the environmental impacts of products when purchasing them; as a result, this factor has become as important as low operating expenses. Such information is not limited to individuals alone;quick-delivery companies and fleet owners are also at the forefront, recognizing the benefits of switching to electric mobility, which boosts demand in the commercial sector. Some logistics brands, for instance, are pledging that they will make their delivery fleets 100% electric by 2030. So these targets would be transformative in corporate sustainability from greening intent to profit potential.

The Role of Government

The Indian government is at the forefront of this EV revolution and the nation's Union Budget 2025 exceeds the commitment. The budget has made some important declarations on further enabling the EV ecosystem. India's most esteemed EV policy, the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, is also funded and being further expanded in this budget 2025. The full budget document will outline the financial cutoffs and specific changes, but it is clear that the government wants to continue offering rebates that subsidize the cost of EVs across various classes of vehicles.

In addition, the emphasis on charging infrastructure in the budget was mentioned with great regard at a different level. Charging stations will now be built along all major highways and in cities, which would help remove the issue of range anxiety that potential users have. Most importantly, exemptions from basic customs duties have been added to 35 more capital goods required for manufacturing EV batteries, which indicates a direction to strengthen the EV supply chain in the country. Additionally, this budget section aims to foster research and development in advanced batteries and other associated fields to achieve self-sufficiency and advanced technology development in India. This budget is a major boost for every aspect of the EV ecosystem, from raw material vendors, component makers, and vehicle builders, all the way to the final consumers.

Highlighting the significance of this commitment and the sector itself, Nitin Gadkari, the Minister of Road Transport and Highways in India, issued a statement stressing the urgent necessity to decarbonize the transportation sector and ensure its sustainability from economic, ecological, and environmental viewpoints. He further noted that the government aspires to reach an electric vehicle sales penetration of 30 percent for private cars, 70 percent for commercial vehicles, 40 percent for buses, and 80 percent for two- and three-wheelers by the year 2030.

The Growing Demand for Electric Two-Wheelers and Three-Wheelers

Due to the rapid growth of the market that saw more than 1.97 million Electric Vehicles (EVs) being sold within a financial year (March 2024 to February 2025), strong public concern due to increased pollution and climate change, and robust government support displayed in the Union Budget 2025 through the expansion of FAME subsidies, the development of charging infrastructure, and manufacturing incentives, the electric two-wheeler and three-wheeler markets are experiencing exponential growth. These segments are particularly well-suited for electrification from the Indian perspective.

Electric two-wheelers are easy and affordable modes of personal transportation, particularly for the working population in cities with high population and traffic levels and relatively lower commuting distances. Likewise, electric three-wheelers are also becoming economically feasible for last-mile connectivity and logistics support. This environment, which is supported by favourable legislation and high demand, has fostered the development of a new generation of innovative entrepreneurs who are able to meet the distinctive requirements of the Indian ecosystem.

Innovation in the EV Ecosystem

These innovative enterprises are not merely assembling the parts they have acquired; they are spearheading the effort to revolutionize electric vehicles (EVs) by implementing distinctive technological advancements throughout the ecosystem. There are 399 funded electric vehicle ventures in the country, which suggests that the industry is both active and new. They are able to provide solutions that larger organizations may neglect due to their focus on the user and their diminutive size. An example of an area that has experienced significant innovation is battery technology. Numerous startups are researching new battery electronics and heat management technologies to create high-capacity, long-lasting, and safe battery packs tailored to India’s circumstances. These innovations aim to solve a range of issues and deterioration of batteries due to high temperatures.

Solving Charging Infrastructure Issues

Another area in which startups are leading innovation centers around affordable and accessible charging solutions. Many startups are taking the initiative to solve the problem of low public charging infrastructure with novel solutions like battery swapping. There are a number of companies setting up networks of battery swapping stations for electric vehicle (EV) operators, especially in the two- and three-wheeler categories, to replace used-up batteries with charged ones in the least possible downtime. In order to meet the demand for effective and accessible mobile charging services, numerous startups are also developing smart charging networks that automate energy distribution, as well as mobile charging services, which help minimize charging times in urban and semi-urban regions.

To summarize, the Indian entrepreneurial ecosystem is at the forefront of transforming the nation’s EV landscape. These businesses are agile and innovative, incorporating transformative changes in the entire EV value chain. The government’s favourable attention, as evidenced by the Union Budget 2025, coupled with a hyper-responsive market that recorded close to 2 million EVs sold in the past year, compels a larger Indian population to be environmentally conscious. Pioneering and deploying cutting-edge battery technologies, accessible charging infrastructure solutions such as battery swapping, and designing Indian-context vehicles are all essential digital infrastructures together.

Alongside these multi-faceted approaches, the country is cementing its base for a greener and sustainable future. As these startups continue to scale up, invest, and increase innovative solutions, they will become increasingly instrumental in helping India fulfil its aggressive goal of becoming a hub for electric vehicles and, more importantly, creating an eco-friendly nation.

Views are personal. The author is Managing Director at OPG Mobility